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Colocation as network: Types and performance implications of structural positions in colocation network

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Abstract

This study investigates types and performance implications of competitive colocation from a network perspective. Drawing on the literature of industrial organization, economic geography, and social network analysis, we introduce a new conceptualization of location choice and colocation as an inter-firm network relationship and advance a theoretical framework on the dimensions of competitive colocations and their implications on firm performance. We maintain that this new approach provides an integrative framework to better understand the types and performance implications of competitive colocation. We first introduce two distinct dimensions of a focal firm’s competitive colocation, intensity and diversity, along with which we develop a typology of a focal firm’s structural position in the competitive colocation network: simple colocation, multicountry colocation, and multifirm colocation. We test predictions of the theoretical framework with subsidiary location information of the firms listed in the Fortune Global 500. The results of empirical analyses corroborate the main thesis of the current study that the intensity and diversity of a focal firm’s competitive colocation individually and jointly influence firm performance. In addition, we find that, on average, multicountry colocation outperforms the other two types of colocation.

Résumé

Cette recherche examine dans une perspective de réseau les types de colocalisation concurrentielle ainsi que leurs implications en matière de performance. Nous appuyant sur les littératures de l'organisation industrielle, de la géographie économique et des réseaux sociaux, nous conceptualisons pour la première fois le choix de localisation et la colocalisation comme une relation de réseau inter-entreprises, et proposons un cadre théorique sur les dimensions des colocalisations concurrentielles et leurs conséquences sur la performance de l'entreprise. Nous estimons que cette nouvelle approche apporte un cadre intégrateur permettant de mieux comprendre les types de colocalisation concurrentielle ainsi que leurs implications en matière de performance. Nous introduisons tout d'abord deux dimensions distinctes de la colocalisation concurrentielle d'une entreprise focale, à savoir l'intensité et la diversité, avec lesquelles nous développons une typologie de la position structurelle d'une entreprise focale dans le réseau de colocalisation concurrentielle : colocalisation simple, colocalisation multi-pays et colocalisation multi-firmes. Nous testons les prédictions du cadre théorique à l'aide d'informations sur la localisation des filiales des entreprises figurant dans le classement Fortune Global 500. Les résultats des analyses empiriques corroborent la thèse principale de notre recherche selon laquelle l'intensité et la diversité de la colocalisation concurrentielle d'une entreprise focale influencent individuellement et conjointement la performance de l'entreprise. En outre, nous constatons qu'en moyenne, la colocalisation multi-pays est plus performante que les deux autres types de colocalisation.

Resumen

Este estudio investiga los tipos y las implicaciones de desempeño de la colocalización competitiva desde una perspectiva de red. Basándonos en la literatura sobre organización industrial, geografía económica y análisis de redes sociales, introducimos una nueva conceptualización de la elección de ubicación y de colocalización como una relación de red entre empresas y avanzamos un marco teórico sobre las dimensiones de las colocalizaciones competitivas y sus implicaciones en el desempeño de las empresas. Sostenemos que este nuevo enfoque proporciona un marco integrador para comprender mejor los tipos de colocalizaciones competitivas y sus implicaciones para el desempeño. En primer lugar, introducimos dos dimensiones distintas de la colocalización competitiva de una empresa, la intensidad y la diversidad, junto con las cuales desarrollamos una tipología de la posición estructural de una empresa en la red de ubicación competitiva: colocalización simple, colocalización en varios países y colocalización en varias empresas. Pusimos a prueba las predicciones del marco teórico con información sobre la ubicación de las filiales de las empresas que figuran en la lista Fortune Global 500. Los resultados de los análisis empíricos corroboran la tesis principal del presente estudio de que la intensidad y la diversidad de la colocalización competitiva de una empresa influyen individual y conjuntamente en su desempeño. Además, observamos que, en promedio, la colocalización en varios países supera a los otros dos tipos de colocalización.

Resumo

Este estudo investiga tipos e implicações de desempenho da colocação competitiva a partir de uma perspectiva de rede. Com base na literatura de organização industrial, geografia econômica e análise de rede social, introduzimos uma nova conceituação de escolha de localização e colocação como um relacionamento de rede interfirmas e avançamos em um modelo teórico sobre as dimensões de colocações competitivas e suas implicações no desempenho da empresa. Sustentamos que essa nova abordagem fornece um modelo integrado para entender melhor os tipos e implicações de desempenho da colocação competitiva. Inicialmente introduzimos duas dimensões distintas de colocação competitiva de uma empresa focal, intensidade e diversidade, com as quais desenvolvemos uma tipologia da posição estrutural de uma empresa focal na rede de colocação competitiva: colocação simples, colocação multipaís e colocação multifirma. Testamos as previsões do modelo teórico com informações de localização de subsidiárias das empresas listadas na Fortune Global 500. Os resultados das análises empíricas corroboram a tese principal do presente estudo de que a intensidade e a diversidade da colocação competitiva de uma empresa focal influenciam individualmente e em conjunto o desempenho da empresa. Além disso, descobrimos que, em média, a colocação multipaís supera os outros dois tipos de colocação.

摘要

本研究从网络角度调查了竞争共置的类型和绩效启示。借鉴产业组织、经济地理学和社会网络分析文献， 我们引入了将区位选择和共置作为企业间网络关系的新概念化， 并推进了竞争共置及其对企业绩效启示的理论框架。我们认为， 这种新方法提供了一个综合框架， 可以更好地理解竞争共置的类型和绩效启示。我们首先介绍了焦点公司竞争共置的两个不同维度， 即强度和多样性， 同时我们开发了焦点公司在竞争性共置网络中的结构位置的类型学：简单共置、多国共置和多公司共置。我们使用财富全球 500 强公司的子公司的区位信息来检验理论框架的预测。实证分析结果证实了当前研究的主要论点， 即焦点企业竞争共置强度和多样性单独地和共同地影响企业绩效。此外， 我们发现， 平均而言， 多国共置优于其它两种类型的共置。

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ACKNOWLEDGMENTS

We appreciate the insightful comments and suggestions from JIBS Editor Peter Liesch and three anonymous reviewers. We are also grateful to JIBS Editors Sjoerd Beugelsdijk and Rosalie Tung for their editorial guidance. We thank Tailan Chi, Alvaro Cuervo-Cazurra, Jingyu Yang, the anonymous reviewers, and the participants at the 7th Midwest Strategy Meeting, the 2017 Academy of Management Annual Meeting, the International Management Division Paper Development Workshop at the 2017 Academy of Management Annual Meeting, the 2017 Strategic Management Society Annual International Conference, the Academy of International Business 2018 Annual Meeting, and seminars at University of Kansas and Florida International University for their comments and suggestions. Earlier versions of the paper received the HKUST Best Paper in Global Strategy Award at the 2017 Academy of Management Annual Meeting, and the Aalto University "That's Interesting!" Award at the Academy of International Business 2018 Annual Meeting. The first author gratefully acknowledges the financial support of the University of Kansas General Research Fund allocation # 2301105.

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  1. School of Business, University of Kansas, 1654 Naismith Drive, Lawrence, KS, 66045, USA

    Minyoung Kim & Chang Hoon Oh

  2. DeGroote School of Business, McMaster University, 1280 Main Street West, Hamilton, ON, L8S 4M4, Canada

    Jukyeong Han

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  1. Minyoung Kim
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Kim, M., Oh, C.H. & Han, J. Colocation as network: Types and performance implications of structural positions in colocation network. J Int Bus Stud 55, 71–90 (2024). https://doi.org/10.1057/s41267-023-00629-8

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